Keep these 5 things in mind while selecting a franchise!
Before you finalise a franchise that you are going to take, do not forget to go through these steps. You need to take the right decisions at all times for your future business growth:
1. Read company franchisor financial info
Now that you have decided that you are taking a franchisee, it becomes really important to read the financial statements of the franchisor. This way you will get an idea about the profitability of the franchisor, their sales from each market and you will get to know about the segments which are doing really well.
2. Know about the growth plans
Not only you will gain insights into the franchisor’s business but you will also get to know abou their growth plans, priority markets for them, revenue contribution from product and each market as well as from every segment. Most of the forward thinking organisations put up their product road-map and future growth plans while they decide to grow their business by having more and more business partners by way of franchise.
3. Ask for ROI sheets
While you are conducting business research, also ask for ROI sheets from the franchisor or from the service provider like franchisekaro.com for every franchise you are going to evaluate. Since your motive is to earn good returns on your investments, it becomes all the more important that you have done your business research very diligently and have returns numbers handy while evaluating the franchise agreement.
4. Read legal documents well
Just like you invest in stocks and other financial instruments it is highly important to read the offer documents and business agreements. Similarly, an investor must ask for franchisor – franchise agreement that a franchisee is going to ultimately sign. It is very important that you read between the lines which is going to ultimately affect your business profitability. However small is your investment, going through the documents is very very important.
5. Research well
In addition, it is advisable that you conduct primary and secondary research for all the brands that are in your consideration set while evaluating a business franchise.
Our expert teams at franchisekaro.com helps you at every stage of your business research and handholds you throughout your business journey. Our experts helps you at all these stages, be it:
a. Identifying a franchise
b. Selecting a franchise
c. Closing the deal
d. Managing your franchise
e. And growing your franchise
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